Pakistan Monitors Global Oil Prices as Israel-Hamas Conflict Intensifies

Pakistan Monitors Global Oil Prices as Israel-Hamas Conflict Intensifies

Karachi, October 9, 2023 – Pakistan is closely monitoring global oil prices as the Israel-Hamas conflict intensifies. The conflict escalated on Monday when Hamas launched attacks on Israeli installations last week, resulting in significant losses for both sides.

In response to these attacks, Israel carried out bombings, leading to casualties, including innocent civilians. As the conflict enters its third day, international oil prices have seen a substantial surge of 4 percent.

Sources within the Pakistan petroleum ministry have reported that the country is vigilantly monitoring the situation, particularly global oil prices, which directly impact domestic fuel prices.

Pakistan is scheduled to review petroleum prices on October 15, 2023, for the second half of the month. Analysts had been anticipating a significant reduction in domestic petroleum prices due to the substantial decline in international oil prices over the past couple of weeks and the considerable appreciation of the Pakistani rupee.

However, the sudden shift in the global oil market is likely to affect the outlook for domestic petroleum prices. In its most recent review on September 30, 2023, Pakistan announced significant cuts in petroleum prices for the first half of October 2023. The new prices took effect on October 1, 2023.

As per the Ministry of Finance of Pakistan notification, the price of petrol was reduced by Rs 8, bringing it down to Rs 323.38 per liter from its previous rate of Rs 331.38 per liter. Similarly, the price of high-speed diesel was lowered by Rs 11, resulting in a new price of Rs 318.18 per liter, down from Rs 329.18. The evolving situation in the Middle East may lead to a reassessment of these prices in the upcoming review.